Washington adopted the California motor vehicle emissions and compliance requirements specified in Title 13 of the California Code of Regulations, with the exception of California's zero emission vehicle sales requirements. The Washington Department of Ecology adopted rules to implement these emissions standards for passenger cars, light-duty trucks, and medium-duty passenger vehicles, known as the Clean Car Law. For more information, see the Washington Clean Car Standards website. (Reference Revised Code of Washington 70.120A.010 and 70.120A.020 and Washington Administrative Code 173-423-010 to 173-423-150)

Public lands used for installing, maintaining, and operating EV infrastructure are exempt from leasehold excise taxes until January 1, 2020. Additionally, the state sales and use taxes do not apply to plug-in electric vehicle (PEV) batteries; labor and services for installing, repairing, altering, or improving PEV batteries and EV infrastructure; and the sale of property used for EV infrastructure. (Reference Revised Code of Washington 82.29A.125, 82.08.816, and 82.12.816)

Businesses are eligible to receive tax credits for purchasing new alternative fuel commercial vehicles. Qualified commercial vehicles must be powered primarily by natural gas, propane, hydrogen, dimethyl ether, or electricity. Tax credit amounts vary based on gross vehicle weight rating (GVWR) and are up to 50% of the incremental cost, with maximum credit values as follows:

GVWR

January 1, 2016 to December 31, 2017

January 1, 2018 to January 1, 2021

Up to 14,000 pounds (lbs.)

$5,000

$25,000

14,001 to 26,500 lbs.

$10,000

$50,000

Over 26,500 lbs.

$20,000

$100,000

This exemption also applies to qualified used vehicles modified with a U.S. Environmental Protection Agency-certified aftermarket conversion, as long as the vehicle is being sold for the first time after modification. Modified vehicles are eligible for credits equal to 30% of the commercial vehicle conversion cost, up to $25,000. The converted vehicle must be less than two years old and have an odometer reading of fewer than 30,000 miles. Beginning January 1, 2018, eligible converted vehicles must be less than ten years old and have an odometer reading of fewer than 450,000 miles.

Each entity may claim up to $250,000 or credits for 25 vehicles per year. Credits may be earned between January 1, 2016, and January 1, 2021. All credits earned must be used in that calendar year or the subsequent year. Tax credits are available on a first-in-time basis and are subject to annual limits of $2 million per weight class.